Insolvency-Related Activity Increases In Kent And The South East

Insolvency-related activity rose slightly in Kent and the South East last month after three consecutive months of decreases, says R3, the UK’s restructuring, turnaround and insolvency trade body.

R3’s analysis of data provided by Creditsafe indicated an increase in insolvency-related activities from 163 in June to 185 in July.

The figures include administrator and liquidator appointments together with creditors’ meetings.

The South East figure for insolvency-related activities remains the sixth highest in the UK, behind Greater London with 529, the North West 435, East Anglia 389, the West Midlands 283 and Yorkshire & Humberside 235.

The rise in the South East mirrors most of the rest of the UK, with increases in seven regions and decreases in just the West Midlands, the South West, Wales, Scotland and Northern Ireland.

“July’s rise is not encouraging but may be just a blip and not indicative of a longer-term trend. Nonetheless, it reflects the continued economic volatility that has defined the UK’s financial landscape in recent years.”

He cited a range of challenges contributing to this uncertainty: “Britain’s shrinking economy with GDP in decline, creditors actively pursuing debts through the courts, rising unemployment and continuing fallout from the increase in employer National Insurance contributions.

“Looking at particular sectors, we have falling retail sales driven by ongoing consumer caution, a struggling hospitality sector which needs a strong end to the summer to stay afloat and construction industry hesitation amid a levelling out of property prices.

He also referred to the Economic Confidence Index, compiled by the Institute of Directors (IoD), which measures business leader optimism in prospects for the UK economy and which fell to -72 in July 2025 from -53 in June.

“This exceeds the previous record low of -69 in April 2020 and marks the lowest reading of the Index since its introduction in July 2016.  That is a stark warning that business confidence is severely diminished.

“One brighter aspect is the Bank of England’s decision to cut interest rates from 4.25% to 4% on August 7 in a bid to stimulate the economy, although we must wait to see what impact this will have.

“Also, the Stock Market continues to perform solidly with the FTSE 100 Index on an upward trend for 12 months, despite the dramatic falls when USA tariffs were announced in April.

“Some directors might be holding off instigating formal insolvency action to see what is around the corner in this rapidly developing financial climate, in case trading conditions improve.”

R3’s Southern & Thames Valley region includes Kent, Surrey, Sussex, Buckinghamshire, Oxfordshire, Hampshire, the Isle of Wight, Dorset, Wiltshire and Berkshire.

Neil, a Regional Associate Director at insolvency litigation financing company Manolete Partners Plc, urged business owners across the South and Thames Valley be on their guard and remain alert to signs of trouble.

“Our message to directors or major stakeholders is that if you are concerned in any way about the future of your business you should act quickly. If you spot warning signs seek professional help immediately. The sooner a problem is diagnosed the more likely it is that a solution can be found.

“Most R3 members offer an initial consultation free of charge, giving business owners a chance to understand their options before matters become critical.”

The latest Creditsafe data shows that the number of start-ups in the South East rose from 5,894 in June to 6,281 in July. The number of companies with invoices that had gone past their payment date dropped slightly from 61,782 in June to 61,462 in July.

There was a decrease in the number of number of invoices which had gone past their due date in the region - from 544,735 in June to 515,681 in July.

Creditsafe is a multinational business intelligence provider with services including company credit scores and credit report information.

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